Fed Eases Ukraine's Path to Crisis

Loose Money Allowed Ukraine to Avoid Tough Decisions

The situation in Kiev looks ugly. Pro-Western protesters faced violence from riot police in Ukraine's capital at the weekend and the government endured a no-confidence vote Tuesday. Bond investors face a rising risk of losses.

The immediate cause is President Viktor Yanukovych's high-stakes gamble in refusing to sign a trade-and-political accord with the European Union, instead favoring closer ties with Russia. But the U.S. Federal...